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🚀 PRECIOUS METALS | Global Central Bank Gold Purchases Show Resilience, Citic Securities Reports Citic Securities has released a report indicating that the global trend of central banks purchasing gold remains structurally resilient. According to Jin10, the market may be overestimating the driving forces and impact mechanisms behind this trend. The report outlines several key points: 1) The proportion of non-standard channels and domestic storage in gold purchases is rising, reflecting the strengthened attribute of gold as a 'sovereign safe asset.' 2) The current wave of gold buying goes beyond conventional reserve management and should not be directly equated with de-dollarization. The primary logic for central banks holding gold remains crisis hedging and reserve diversification. 3) Recent disturbances, such as temporary reductions by central banks in Turkey and Russia due to fiscal pressures, are tactical and do not alter the global net buying pattern. 4) Central bank gold purchases are a long-term force elevating the gold price center, but their behavior of buying on dips means they play more of a supporting role. Variables like real interest rates have a more significant impact on gold prices. 5) The gap in gold reserve proportions between emerging market central banks and developed countries is substantial, indicating that the current cycle of central bank gold purchases is far from over. Citic Securities is optimistic about medium to long-term allocation opportunities but advises monitoring signals of weakened correlation between gold and risk assets in the short term as a key entry point for buying on dips. #PreciousMetals#Gold#CentralBank#GoldPurchases#SafeAsset#ReserveDiversification#EmergingMarkets#GoldPrice#Investment#FinancialMarkets

🚀 Geopolitical Tensions Prompt Shift to Stablecoins in Commodity Trade Western banks are accelerating their withdrawal from commodity trade financing due to compliance and sanction risks linked to escalating geopolitical tensions in Iran. According to Odaily, this has led traders to turn to stablecoins for cross-border settlements. Banks are concerned that seemingly compliant transactions might indirectly expose them to sanctioned entities, prompting a reduction or exit from trade financing in affected regions. As traditional financial payment and settlement channels tighten, stablecoins, particularly USDT pegged to the dollar, are increasingly used as alternative settlement tools in emerging market trade payments. Data indicates that the market capitalization of stablecoins has surpassed $300 billion, with on-chain transaction volumes exceeding $4 trillion, accounting for approximately 30% of overall on-chain activity. #GeopoliticalTensions#Stablecoins#CommodityTrade#WesternBanks#CrossBorderSettlements#USDT#TradeFinancing#Sanctions#EmergingMarkets#OnChainActivity

🚀 Global Economic Concerns Amid Middle East Tensions According to Jin10, a report by China International Capital Corporation (CICC) highlights that since March, concerns over conflicts involving the U.S., Israel, and Iran, along with potential blockages in the Strait of Hormuz, have triggered a market-wide risk aversion. This has led to declines in most asset classes, excluding oil and agricultural products, raising fears of stagflation. CICC acknowledges the undeniable impact of supply shocks, which could potentially slow overall economic growth. However, if the Strait of Hormuz gradually reopens, the geopolitical risks might exacerbate the K-shaped economic divergence, leading to increased investment activity while cooling consumption and employment. In the context of accelerated AI substitution and an inherently cooling labor market, inflation in resource and capital goods is unlikely to create a 'wage-inflation' spiral. From this perspective, CICC suggests that the mainstream narrative of global stagflation might be overstated. The report reiterates the view held since the beginning of the year that, amid an intensified K-shaped economy, liquidity recovery from its trough, and sustained fiscal expansion, the global nominal economic cycle driven by investment is expected to resume its upward trend. This will likely lead to continued rebalancing of global funds across sectors, asset classes, and regions, benefiting a range of physical assets and emerging markets. #GlobalEconomy#MiddleEastTensions#GeopoliticalRisk#Stagflation#SupplyShock#EconomicGrowth#KShapedRecovery#Investment#AIImpact#LaborMarket#Inflation#LiquidityRecovery#FiscalExpansion#EmergingMarkets#AssetAllocation

🚀 Stablecoin FX Pricing Tightens in Emerging Markets by March According to NS3.AI, Borderless reported that 14 out of 21 monitored blockchain-based currencies were within 100 basis points of interbank rates by March, indicating tighter stablecoin foreign exchange pricing in emerging markets. In Latin America, stablecoin FX traded approximately 22 basis points from interbank rates throughout the quarter, while execution costs in Brazil reached zero basis points across various providers. In East Africa, pricing gaps narrowed significantly, although Zambia and Malawi continued to experience wide fluctuations in less liquid markets. #stablecoin#FXpricing#emergingmarkets#blockchain#LatinAmerica#EastAfrica#Brazil#Zambia#Malawi#interbankrates

🚀 Democratic Republic of Congo Launches Maiden Eurobond Amid Eased Tensions The Democratic Republic of Congo has initiated the sale of its first eurobond, capitalizing on a temporary lull in hostilities between the U.S. and Iran. Bloomberg posted on X, highlighting that this geopolitical development has increased investor interest in riskier assets. The bond issuance marks a significant step for the Democratic Republic of Congo as it seeks to tap into international financial markets. The pause in tensions has created a more favorable environment for emerging markets to attract investment. This move is part of the country's broader strategy to bolster its economic standing and leverage global financial opportunities. #DemocraticRepublicofCongo#Eurobond#GeopoliticalTensions#USIranRelations#EmergingMarkets#Investment#InternationalFinance#RiskyAssets#EconomicGrowth#FinancialOpportunities